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WALL STREET EDGES LOWER ON EARNINGS, CHINA DATA

U.S. stocks fell modestly, a day after the S&P 500 rose toits highest level in five years, as a weak outlook from Intelwas weighed against encouraging data out of China and afourth-quarter profit at Morgan Stanley.

The Dow Jones industrial average was down 6.68points, or 0.05 percent, at 13,589.34. The Standard & Poor's 500Index was down 2.60 points, or 0.18 percent, at 1,478.34.The Nasdaq Composite Index was down 10.63 points, or0.34 percent, at 3,125.37.

** MORGAN STANLEY, $22.01, up 6 pct (0935 ET)

The sixth-biggest U.S. bank by assets reported afourth-quarter profit on a surge in equity sales and trading,and strong margins at its wealth management business.

** NETFLIX INC $101.70, up 4 pct (0935 ET)

Janney Capital Markets upgraded the video streaming companyto "buy" from "neutral". The brokerage said Netflix's deal withWalt Disney Co and the potential for a deal with SonyCorp are changing how studios, multi-system operatorsand investors approach the company. Janney also said competitionis not a threat yet. "Competition has not yet materialized tothe extent that it poses significant near-term risk," analystTony Wible said in a note, and raised his fair value estimate to$129.

In December, Disney agreed to give Netflix exclusive TVdistribution rights to its movies, becoming the first majorstudio to stream its movies to TV viewers via Netflix instead ofdistributing them to HBO, Showtime or other premium TV channels.

** SCHLUMBERGER LTD, $73.99, up 1 pct (0935 ET)

The world's largest oilfield services company reportedfourth-quarter earnings just ahead of recently reducedexpectations on strong demand for oil and gas drilling servicesbeyond the shores of North America.

** GENERAL ELECTRIC CO, $21.70, up 2 pct (0937 ET)

The company reported a better-than-expected, 7.5 percentrise in fourth quarter profit and a sharp increase in itsbacklog of equipment orders.

** STATE STREET CORP, $52.80, up 5 pct (0950 ET)

The bank said it would cut about 630 jobs worldwide, about 2percent of its workforce, as it reported a 26 percent boost infourth-quarter net income amid pressure from some of its largestshareholders to cut expenses.

** TRIUS THERAPEUTICS INC, $4.78, down 9 pct (0937ET)

The drugmaker said it plans to offer and sell its commonshares through a public offering, but did not give the actualsize or terms of the offering. Citigroup and Leerink Swann areacting as joint book-running managers and Baird is acting as aco-lead manager for the proposed offering.

The maker of genetic testing equipment and products used inbiotechnology development said it hired advisers to conduct astrategic review, a day after a Canadian newspaper reported thecompany might be up for sale.

** RESEARCH IN MOTION LTD, $15.63, up 4 pct (0940ET)

The BlackBerry maker's shares surged after Jefferies Groupboosted its rating and price target on the company, days aheadof the crucial launch of a line of smartphones powered by thecompany's new BlackBerry 10 software.

** INTEL CORP, $21.24, down 6 pct (0942 ET)

** ADVANCED MICRO DEVICES, $2.63, down 4 pct (0942ET)

Intel, the world's leading chipmaker, forecast quarterlyrevenue that disappointed Wall Street, and a sharp increase incapital spending it plans for 2013 unnerved investors alreadyconcerned about slow demand for personal computers.

The company said U.S. health regulators granted marketingapproval to its first product, a battery-powered migraine patchnamed Zecuity, causing its shares to jump about 21 percent inextended trade.

** CAPITAL ONE FINANCIAL CORP, $56.95, down 7.5 pct(0945 ET)

The company's fourth-quarter profit missed analysts'expectations it set aside more money to cover defaults on itscredit cards.

** AMERICAN GREETINGS CORP, $16.62, up 7 pct (0946ET)

The founding family raised its offer price to take the giftcard and party goods company private. Chief Executive Zev Weiss,other members of the founding Weiss family and related partiesoffered $17.50 per American Greetings share, up from theirprevious offer of $17.18.

The global miner sacked Chief Executive Tom Albanese onThursday and revealed a $14 billion writedown almost entirely onthe value of his two most significant acquisitions, the Alcanaluminium group and Mozambican coal.